Despite Woolworths having a strong last quarter in sales, the marketplace dynamic has changed a lot since then and it is causing Woolworths to experience a decline in sales.
Amazon.com.au is adding to this pressure by offering pantry goods and a fast-growing food and produce area of business. Some pantry goods are sold at 50% cheaper than Woolworths can muster up.
It’s looking bleak for Woolworths where their lacklustre retail outlets have been voted by over 400 people as being horrendous, filthy disgusting and the layout of the stores making no sense. Just have a look at the Town hall Sydney CBD store. It’s uninviting and disgusting.
There is a certain smell you get when you walk into a Woolworths, at that smell is of an unhygienic store. The seafood and deli department at my local store always smells like someone died.
Besides store issues, Woolworths has a long way to go in treating customers properly. The survey indicated that a majority felt that the customer service was rude, arrogant or none existent.
The writing is on the wall for Woolworths, lift your game big time or lose your business to a company who obsesses over customers.